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Together we'll build your property portfolio

We have a team that specialises in buy to let mortgages – they know all about the current regulations and how each lender ‘stress tests’ your portfolio.

What can I borrow?

Lenders link this to the rental income of the property and depends on the type of property, your tax rate and the mortgage product.

Which mortgage is right for me?

This will depend on whether you’re buying for long-term capital growth or to maximize your income. Our experts will show you.

How can we help?

Our team has years of industry knowledge and this experience is invaluable to help maintain and grow your portfolio. We also have access to exclusive rates from lenders that only deal with brokers like us.

Important information

Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured upon it.

A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances. A typical fee is £495.

There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage.

So, how does it all work?

Fancy life as a landlord, or have a property you don’t want to sell yet and need to rent out? Then you will need a Buy to Let Mortgage. This is a special type of mortgage that allows a current or prospective landlord to buy a property with the intention of letting out that property to tenants. It’s a great way to get some extra income and expand your property portfolio. But things aren’t as simple as they were a few years ago and you need to know about all the recent changes (don’t worry, we are fully up to date and will guide you through them).

Whether this is to grow a portfolio, to obtain short-term capital growth or long-term income supplement, it is important to weigh up all the options with an experienced professional. Low rates may seem attractive, but a plethora of fees and reversion rates can come back to bite.

Unlike looking for a property to live in, you need to remove emotion and consider the investment potential of the property. Below are some key considerations you should think about:-

  1. Rental Income – most lenders require the rent to exceed the monthly mortgage payments, on an interest-only basis, by 145% per month at an assumed rate of around 5.5%, though this does depend on your personal tax rate, the type of property and whether you are buying in a personal name or through a limited company.
  2. Objectives – is the property to bolster your income, or for longer-term growth, or both? There will be tax aspects you need to consider so please make sure you get independent tax advice from a specialist. Getting rental income may be a nice bonus, but it could push up your total income tax rate and mean you are no longer eligible for certain benefits.
  3. Take your Estate Agents for advice on property type and location.
  4. Talk to a professional broker about your options. Trust us on this, even if it’s not us (which would be upsetting) make sure you do not attempt to do this alone. We will help guide you through the myriad of regulations and criteria to make sure you get the right mortgage for you.

For experienced landlords, or for those with a large property portfolio, actively managing your portfolio to ensure you have the right rate on each property or are able to gear up and release equity for future purchases is of vital importance when looking to grow.

We have years of experience helping landlords do just that, in fact, we have a special team of people. It may be possible to agree on a credit line or facility for you to buy additional properties quickly and cheaply, making the most of rental and capital growth opportunities.

For professional landlords, the Prudential Regulation Authority, (PRA) have been explicit in the fact that they feel mortgage lenders should be underwriting portfolio landlords, defined as anyone with 4 or more mortgaged properties in a very different way to those with just a couple of properties.

Those applying for a mortgage will now need to provide more information which can include the following:

  1. Details of personal or alternative sources of income and associated Tax Returns, including evidence that the appropriate tax is paid on the rental income
  2. Detailed Portfolio summary to include more than the standard Property Value, Rent Received, Mortgage Amount and property address provided previously. It should also include columns on costs associated with the property, for example, service charges, ground rent, lettings agent’s costs, insurances etc. In some instances, this portfolio will be stress tested to check the rent covers the mortgage payments.
  3. Asset/Liability Statement
  4. Cash Flow Projection
  5. Business Plan and commentary

Our experts at Coreco know which lenders require what and can help ease the burden to direct you to the most appropriate lender.

Limited Company Borrowing.

Given the recent tax changes [link] many of our landlords now want to borrow in a Limited Company rather than personal names. We strongly recommend, in fact we insist, that our clients obtain independent tax advice to ensure they are borrowing in a manner that is right for them.

If a Limited Company is the preferred route, then no worries. Our experts know exactly which lenders can help and offer you the very best rates to fit your particular circumstances.

Residential Development and Commercial Finance

For landlords with portfolios of a certain size, the line often blurs between residential investment and commercial financing, whether it is developing a site, converting a property into flats or even building from scratch. Getting the right advice, finance and advice in this area of the market is just as critical and can often mean the difference between turning a healthy profit or not.

Section 24, dubbed “the biggest threat landlords have ever faced”, ushered in a new era of tax changes phased in from 6th April 2017, which will come to a head in 2020. This potentially pushes landlords into a higher tax bracket, paying more tax and potentially losing access to certain benefits.
In summary, this package included the following:

  •  Landlords of furnished lets could claim a wear and tear allowance of 10% of their rental income. With effect from April 2016 this relief was restricted to expenditure actually incurred.
  • Mortgage interest costs could be deducted against rental profits which effectively gives the landlord tax relief at their highest marginal rate of tax. From April 2017, this relief was reduced over 4 years to the basic rate of income tax (which is currently 20%).
  • From April 2016 Stamp Duty increased by 3% for landlords (and second home buyers)
  • Mortgage lenders have had to adapt their rental coverage stress tests and deal with Portfolio landlords, (defined by the Prudential Rental Authority as those with 4 or more mortgaged properties), in a very different way. They have to stress test their whole portfolio, see a business plan, cash flow statement and, most importantly, see that tax is being paid correctly.
    As a result, many landlords looking at buying new properties are more inclined to purchase these in Limited Company names now rather than personal names and it is imperative that anyone looking at an investment property gets independent tax advice before they do anything.
  • From April 1st 2018 it is now against the law in England and Wales for landlords to grant a new tenancy to either new or existing tenants if their property doesn’t have an Energy Performance Certificate rating of ‘E’ or above.
  • Even this is not the end; from October 1st new Government rules will mean that many Buy To Let Investors will be forced to become licenced HMO landlords.

Currently, a licence is only required for properties with three or more storeys that are occupied by five (or more) people from at least two households. From 1 October this will be extended to all properties that are occupied by five or more people from two or more households – regardless of the size of the property.

However, even with all of this, professional landlords are sensing an opportunity and as long as you structure and gear your portfolio correctly with the right tax advice, savvy landlords can still do good business.

It is more important than ever to look for a broker who understands the current market and the numerous foibles of each individual lender. Luckily for you, we do! Managing a portfolio is a serious blend of science and art these days, but for those with the patience and an expert like us alongside them, landlords can still look to the future.

Latest mortgage offers

We know you’re curious so we’ve picked out some of today’s best mortgage rates to give you an idea which lenders and interest rates could be available to you.

    Latest mortgage best buys

    Based on a property value of £300,000 with a mortgage of £180,000.

  • Initial rate
    Overall cost for
    comparison
  • 0.99%
    then 4.74%
    (variable)
    4.4%
    APRC
  • 1.19%
    then 4.49%
    (variable)
    4%
    APRC
  • 1.34%
    then 4.54%
    (variable)
    4.1%
    APRC


  • Narrow down the right mortgage for me

Buy to let guides

Keep up to speed with the latest buy to let changes with our jargon-busting mortgage guides.

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4.8
132 reviews

Excellent
Andrew & Ruth
"We had a great experience working with Anna Vikarska and Abbey Proud on purchasing our new..."

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Andrew & Ruth
We had a great experience working with Anna Vikarska and Abbey Proud on purchasing our new home. Going in, I knew I wanted a mortgage broker to help me choose the best deal. They made that fast and easy, and they knew about more than just cost -- also considering available loan amounts and turnaround times from different lenders. What I didn't realise is just how much more you get by working with professionals like Coreco. Anna and Abbey were in direct contact with our lender and got our offer approved astonishingly quickly. Later, when our purchase details changed and we had to amend the offer, they were able to do that quickly as well. They kept in contact to make sure we were ready for exchange and completion. They also helped us find home and personal insurance. We were lucky to have such good allies in the home buying process.
James Stonehill
"Alex Dowding and the rest of his team were fantastic in helping me find and select..."

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James Stonehill
Alex Dowding and the rest of his team were fantastic in helping me find and select the best mortgage for me and were super useful in helping chase loose ends and keep the process moving. I'd hlighly recommend them to anyone looking for a mortgage broker and associated services.
Sophie
"This is the second review of my adviser David King & Case Worker Zoei McKee following..."

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Sophie
This is the second review of my adviser David King & Case Worker Zoei McKee following the successful completion of a property. Both have each provided a faultless service in securing a good and affordable mortgage deal for me, as well as an accompanying health insurance policy. Their communication is fantastic - quick to reply plus no question has ever been too small for them to take the time to answer or explain. David is incredibly knowledgeable about the market and has been transparent throughout the process which I really value as a first time buyer with a tight budget. He clearly puts the client's best interest first, carefully considering and flagging affordability and risk at all stages. I'd highly recommend working with David & Zoei and would use their services again for future purchases.

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